Top Dividend Yield Mutual Funds (2026)
Ranked by 3 year return, Direct plans, as on the latest NAV · AUM as on 30-09-2026
There are 12 Dividend Yield mutual funds. Their average 3 year return is 12.1% a year, and −5.6% over the last year. The highest 3 year returns: LIC MF Dividend Yield Fund 17.6%, ICICI Prudential Dividend Yield Fund 13.4%, Tata Dividend Yield Fund 13.0%.
- Total AUM
- ₹30,634 Cr
- As on 30-09-2026
- Funds
- 12
- From 12 fund houses
- Expense ratio
- 0.76% to 2.53%
- Direct plans, lowest to highest
- Average 3Y return
- 12.1%
- A year, Direct plans
All Dividend Yield Funds
Ranked by 3 year return, highest first
Ranked by 3 year return, highest first
| Exit load | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| LIC MF Dividend Yield Fund | 1 | 738 | −2.19% | +17.64% | -- | -- | Very High | 0.97% | 1% within 12 months | 15.91% |
| ICICI Prudential Dividend Yield Fund | 2 | 6,328 | −9.73% | +13.40% | +14.70% | +14.56% | -- | 0.76% | -- | 12.77% |
| Tata Dividend Yield Fund | 3 | 1,109 | −0.20% | +12.98% | +12.43% | -- | Very High | 0.81% | 0.5% within 30 days | 15.93% |
| UTI - Dividend Yield Fund | 4 | 3,582 | −6.51% | +12.82% | +10.06% | +13.18% | Very High | 1.54% | 1% within 1 year | 12.51% |
| Aditya Birla Sun Life Dividend Yield Fund | 5 | 1,382 | −5.32% | +10.91% | +11.87% | +11.80% | Very High | 1.87% | 1% within 90 days | 14.65% |
| Franklin India Dividend Yield Fund | 6 | 2,179 | −7.91% | +10.87% | +10.92% | +13.70% | -- | 1.39% | 1% within 1 year | 13.05% |
| SBI Dividend Yield Fund | 7 | 8,059 | −2.68% | +10.74% | -- | -- | Very High | 1.12% | 1% within 30 days | 12.44% |
| HDFC Dividend Yield Fund | 8 | 5,274 | −6.99% | +10.67% | +12.37% | -- | Very High | 0.88% | 1% within 1 year | 14.05% |
| Sundaram Dividend Yield Fund | 9 | 757 | −9.22% | +9.25% | -- | -- | -- | 1.27% | -- | 13.13% |
| Baroda BNP Paribas Dividend Yield Fund | -- | 532 | −4.97% | -- | -- | -- | -- | 1.35% | -- | -- |
| WhiteOak Capital Dividend Yield Fund | -- | 421 | -- | -- | -- | -- | Moderate | 2.53% | None | -- |
| Kotak Dividend Yield Fund | -- | 273 | -- | -- | -- | -- | Very High | 1.14% | 1% within 1 year | -- |
Returns of each fund's Direct plan (its only plan where it has one), as on the latest NAV. 3, 5 and 10 year figures are a rate a year. Std dev: how much the daily returns swung over 3 years, as a yearly figure; lower is steadier. Riskometer and exit load from the fund's scheme summary document; "Varies" means the load changes with how long you hold, and the fund page has the full wording. Expense ratio: Direct plan, from AMFI. AUM at the end of the fund's last reported month. A fund younger than 3 years has no rank and is listed after the ranked ones.
Stocks Dividend Yield Funds Bought and Sold in September 2026
What the 5 largest Dividend Yield funds changed in their September 2026 portfolios, against the month before
Bought
| Stock | New in | Added by |
|---|---|---|
| Kotak Mahindra Bank Ltd.SBI Dividend Yield, ICICI Prudential Dividend Yield | -- | 2 funds |
| Ultratech Cement Ltd.SBI Dividend Yield, ICICI Prudential Dividend Yield | -- | 2 funds |
| Axis Bank LtdFranklin India Dividend Yield | 1 fund | -- |
| Corona Remedies Ltd.SBI Dividend Yield | 1 fund | -- |
| TVS Motor Co LtdFranklin India Dividend Yield | 1 fund | -- |
| Hyundai Motor India LtdFranklin India Dividend Yield | 1 fund | -- |
| Hero MotoCorp Ltd.SBI Dividend Yield | 1 fund | -- |
| Tata Communications LtdFranklin India Dividend Yield | 1 fund | -- |
| Info Edge (India) Ltd.ICICI Prudential Dividend Yield | 1 fund | -- |
| EQ - NATIONAL STOCK EXCHANGE OF INDIA LIMITEDUTI - Dividend Yield | 1 fund | -- |
Sold
| Stock | Exited by | Reduced by |
|---|---|---|
| HDFC Bank Ltd.HDFC Dividend Yield, Franklin India Dividend Yield | 1 fund | 1 fund |
| GAIL (India) Ltd.SBI Dividend Yield, Franklin India Dividend Yield | 1 fund | 1 fund |
| ICICI Bank Ltd.SBI Dividend Yield, Franklin India Dividend Yield | -- | 2 funds |
| EQ - HINDUSTAN AERONAUTICS LTDUTI - Dividend Yield, Franklin India Dividend Yield | -- | 2 funds |
| SKF India (Industrial) Ltd.SBI Dividend Yield, UTI - Dividend Yield | -- | 2 funds |
| Hindustan Unilever LtdFranklin India Dividend Yield | 1 fund | -- |
| Maruti Suzuki India LtdFranklin India Dividend Yield | 1 fund | -- |
| JSW Infrastructure Ltd.SBI Dividend Yield | 1 fund | -- |
| LTIMindtree Ltd.ICICI Prudential Dividend Yield | 1 fund | -- |
| Colgate Palmolive (India) Ltd.SBI Dividend Yield | 1 fund | -- |
From each fund's own monthly portfolio, stocks only. "New in" means the fund did not hold the stock the month before; "Exited by" means it sold all of it. Added and reduced count shares held, so a price move alone is not a change. Funds counted: SBI Dividend Yield Fund, ICICI Prudential Dividend Yield Fund, HDFC Dividend Yield Fund, UTI - Dividend Yield Fund, Franklin India Dividend Yield Fund.
Compare Dividend Yield Funds
The largest funds of the category, side by side
How Dividend Yield Funds Are Taxed
As equity funds: 65% or more of each fund is in Indian stocks
| When you sell | Tax on the gain |
|---|---|
| Within 1 year | 20% of the gain (short term) |
| After 1 year | 12.5% of gains above ₹1.25 lakh a financial year (long term) |
- IDCW (dividend) payouts are added to your income and taxed at your slab rate.
- A stamp duty of 0.005% is deducted when you invest.
Rules in force from 23-07-2024 (Finance Act 2024). Tax depends on your own income; this is general information, not tax advice.
What Is a Dividend Yield Fund?
At least 65% in stocks, mostly of companies that pay high dividends. This is the rule SEBI sets for every fund in the category, so their portfolios can be compared.
Other equity categories: Large Cap · Large & Mid Cap · Mid Cap · Small Cap · Multi Cap · Flexi Cap · Focused · Value and Contra · ELSS
Dividend Yield Funds: Frequently Asked Questions
Which are the top Dividend Yield mutual funds?
By 3 year return, the top Dividend Yield funds are 1. LIC MF Dividend Yield Fund (17.6% a year), 2. ICICI Prudential Dividend Yield Fund (13.4% a year), 3. Tata Dividend Yield Fund (13.0% a year), 4. UTI - Dividend Yield Fund (12.8% a year), 5. Aditya Birla Sun Life Dividend Yield Fund (10.9% a year). Past returns do not promise future returns, so also look at costs, risk and how long each fund has done well.
How many Dividend Yield funds are there?
12 Dividend Yield funds are open for investment, from 12 fund houses.
What is a Dividend Yield fund?
At least 65% in stocks, mostly of companies that pay high dividends.
What is the average return of Dividend Yield funds?
1 year: -5.6%, 3 years: 12.1% a year, 5 years: 12.1% a year. The simple average of every Dividend Yield fund's Direct plan.
Which Dividend Yield fund has the lowest expense ratio?
ICICI Prudential Dividend Yield Fund, at 0.76% a year (Direct plan), as reported to AMFI.
Which is the largest Dividend Yield fund?
SBI Dividend Yield Fund, with ₹8,059 Cr of investors' money on 30-09-2026.
How are Dividend Yield funds taxed?
As equity funds: gains on units sold within 1 year are taxed at 20%; after that, gains above ₹1.25 lakh a financial year are taxed at 12.5%.
This page is information, not investment advice. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Past returns do not promise future returns. Figures come from AMFI, NSE, BSE and each fund house's own documents.